Crypto Lawyer Shares Take On SEC’s Sealed Motion In Binance Lawsuit

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  • John Stark recently highlighted the SEC’s motion to file documents under seal in the lawsuit against Binance.
  • The securities regulator is seeking to introduce 37 additional documents, including exhibits and supplements.
  • Crypto lawyer John Deaton added that the SEC’s significant filing couldn’t be dismissed as FUD.

Crypto lawyer John Reed Stark recently highlighted the Securities and Exchange Commission’s motion to file documents under seal, in the enforcement action against Binance. Stark, who previously served as the Chief of the SEC’s Office of Internet Enforcement, expressed concern over the mysterious filing by the securities regulator, adding that it was a rare tactic.

Stark took to X (formerly Twitter) earlier today to point out the SEC’s latest filing in its lawsuit against the world’s largest crypto exchange. According to him, filing court documents under seal was an unusual move by the SEC, given that it is a civil enforcement agency. He added that it was usually criminal procedural filings that required sealed documents, which led to speculation of more serious charges incoming for Binance and its founder, Changpeng Zhao.

On August 28, the SEC entered a sealed motion for leave to file documents under seal in the U.S. District Court for the District of Columbia. The filing consisted of 37 documents, which included exhibits, supplements, declarations, memorandums, etc. Interestingly, one of the declarations was from the SEC’s Senior Trial Counsel, Jennifer Farer.

The securities regulator’s latest filing, shrouded in secrecy, led to considerable speculation among the crypto community on X regarding what it may entail. Some suggested that the regulator was bringing scathing evidence to strengthen its case against the crypto giant, while others paid no heed to it, dismissing it as FUD.

Stark suggested that the filing was likely related to an existing investigation into Binance by the U.S. Department of Justice, which could potentially impact an impending indictment. Responding to Stark’s comments, fellow crypto lawyer John Deaton added that the SEC’s filing was indeed significant for the case and should not be dismissed as FUD.